Skip to main content
Business LibreTexts

14.6: Introduction to Positive and Negative Externalities

  • Page ID
    48471
  • What you’ll learn to do: define and give examples of positive and negative externalities

    Image of a deflated gold balloon with the text "Congrats Grad!". In the near background are trees and rose bushes. In the far background is the United States of America capitol congress building.
    Figure 1. What does society gain from investing in the education of another student? While not always easy to measure, recent studies suggest the positive externalities to education typically include better health outcomes for the population, lower levels of crime, a cleaner environment and a more stable, democratic government.

    In this section, you will explore in detail the spillover effects of positive and negative externalities. These include positive effects like improved technologies or negative effects like pollution.

    Contributors and Attributions

    CC licensed content, Original
    • Introduction to Positive and Negative Externalities. Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution
    CC licensed content, Shared previously